Politics & Government

Conn. Town Officials to Malloy: Keep the Car Tax

If the car tax is cut, Montville faces a more than $3 million loss. Today, local leaders testify against Malloy's proposal which could force town's to raise other local taxes.

 

Already concerned about the budget proposed by Gov. Dannel P. Malloy, leaders of small towns from across Connecticut will be in Hartford today to testify against the governor's request to eliminate local car taxes.

In Montville, that plan would cost the town more than $3 million annually, according to figures drafted by the state's Office of Fiscal Analysis and Montville Assessor Lucy Beit. Malloy's proposal is to eliminate the local tax on all cars valued at less than $28,500. And if you include the supplemental car levy loss, Montville is looking at taking a $3,271,898 hit -- nearly $3.3 million in total.

Find out what's happening in Montvillewith free, real-time updates from Patch.

Montville Mayor Ron McDaniel said if car taxes are cut, property and business owners would have to shoulder the burden.

"It would mean about a 2.9 percent mill (rate) increase," McDaniel said. "Which would be borne by homeowners and businesses."

Find out what's happening in Montvillewith free, real-time updates from Patch.

Malloy has offered the plan as tax relief for the middle class, arguing that car taxes don't provide as much local revenue as officials believe because it is difficult and costly to collect, according to a report on the website Ct News Junkie.

But local officials complain that Malloy's proposal would put a serious dent in their budgets, costing some towns millions of dollars annually, revenue that will have to be made up by raising local taxes on other business property and real estate.

The proposal is being aired today in a hearing befor the legislature's Finance, Revenue, and Bonding Committee.


Get more local news delivered straight to your inbox. Sign up for free Patch newsletters and alerts.

We’ve removed the ability to reply as we work to make improvements. Learn more here